Costa Del Sol crash?

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This topic contains 5 replies, has 3 voices, and was last updated by Profile photo of Anonymous Anonymous 11 years, 9 months ago.

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  • #51015
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    Anonymous
    Participant

    thanx for the info do u think there will b a big fall on the costa del sol in 2005 with over supply?

  • #58037
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    Anonymous
    Participant

    @lisa wrote:

    thanx for the info do u think there will b a big fall on the costa del sol in 2005 with over supply?

    😕 😕

    Lisa, according to the Economist magazine, they think the Market there is 30% overpriced as does Bill Blevins of Blevins Frank Analysts as well as a host of other people reputedly ‘in the know’. I know quite a few people who cannot sell their properties whether before contract or re-sell after and who are in serious financial difficulty due to the over-hype by some agents including the one mentioned in the Sunday Times recently. you can access this article on this site by clicking on the link mentioned, it’s a good read. I think the market will fall there for the same reasons as it follows the UK market which is also beginning to fall and many purchasers are British and so will feel the pinch.

    Beware the ‘cowboy’ agents who will tell you otherwise!

  • #58041
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    Anonymous
    Participant

    Lisa,

    Just like the next person I have no idea what will happen to property prices on the Costa Del Sol in 2005. By the same token anyone that claims that prices are going to go up by X% is probably just trying to sell you a property whilst having no idea of what will actually take place. However my opinion, for what it is worth, is that there are significant risks of a price correction in the Costa Del Sol property market next year and the year after. The problem is that they are building like crazy and prices have already reached dizzy heights. Increasing the fragility of the situation is the number of off-plan investors with weak balance sheets and inappropriate investment criteria. The UK property market is cooling fast and the British are the big buyers – 50% of the foreign buyer market. Put all this together and I think it likely, though not certain, that the supply of some types of property in some areas will exceed demand, that off-plan investors will be forced to sell at any price, and that prices will be driven down. Long term the property market on the Spanish costas will be fine – there is a huge market in Europe for property there. But in the short to medium term I think a crunch quite likely. But not everywhere on the coast and not for all types of property, though if some areas / types of property were to crash I would expect this to have a depressing influence on the wider market.

    I hope that helps. Any one else got an opinion on this subject?

    Mark

  • #58042
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    Anonymous
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    thanx for your replies i have read the sunday times article which was a intresting read , i would like 2 add that many people have been talked into a buy 2 let scheme when they probably just wanted 1 property and when they are on a medium income and cannot let out there 2nd property they will have 2 sell which as u say will spread panic & cause a mini crash so hopefully i can buy a property then at a reasonable price thanks for ur insight ….. lisa

  • #58087
    Profile photo of Anonymous
    Anonymous
    Participant

    very interesting- we have just bought on the costa tropical- almunecar –
    for this very reason.
    any views on that neck of the woods?

    also trying to find the link to the ST article?

  • #58089
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi Tim,

    You should be okay so long as they aren’t building all around you like it’s going out of fashion and so long as the estate agents in the area aren’t focused on selling ‘investments’ to amateur off-plan investors. That’s all going to go wrong in my opinion. I’m contacted by more and more people complaining about estate agents making claims as to demand in the secondary market (selling on the investment before completion) and the ease with which properties will rent. Many estate agents claim that both are easy but the truth is much more complex than that and people who buy on the strength of these claims are coming to regret it. As a rule of thumb ignore anything that estate agents say about ‘investments’. Most of them are not qualified to talk about investments. It’s likely that they don’t know the first thing about quantifying risk, expected returns and how best to structure a diversified portfolio – the key principles of investment.

    You can read the now-famous and excellent articles in the Times by clicking the following link to our September news bulletin. There you will find links to the articles in question.

    http://www.spanishpropertyinsight.com/spanish_property_bulletin_september04.htm

    Regards

    Mark

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